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Supplemental Financial Information
 6 Months Ended
Jul. 03, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Supplemental Financial Information Supplemental Financial Information
Statement of Operations Information:

Disaggregation of revenue

The following table presents revenue disaggregated by sales channel:
For the three months endedFor the six months ended
July 3, 2022July 4, 2021July 3, 2022July 4, 2021
Distributors1,829 1,518 3,509 2,986 
Original Equipment Manufacturers and Electronic Manufacturing Services1,441 1,040 2,853 2,104 
Other
42 38 86 73 
Total3,312 2,596 6,448 5,163 
Depreciation, amortization and impairment

For the three months endedFor the six months ended
July 3, 2022July 4, 2021July 3, 2022July 4, 2021
Depreciation of property, plant and equipment149 135 291 267 
Amortization of internal use software4 2 6 4 
Amortization of other identified intangible assets 1)
164 168 330 375 
Total - Depreciation, amortization and impairment317 305 627 646 
1) For the six month period ending July 4, 2021, the amount includes an impairment charge as a result of the discontinuation of an IPR&D project for an amount of $36 million.


Financial income and expense

For the three months endedFor the six months ended
July 3, 2022July 4, 2021July 3, 2022July 4, 2021
Interest income6 1 8 2 
Interest expense(106)(90)(210)(177)
Total interest expense, net(100)(89)(202)(175)
Extinguishment of debt(18)— (18)— 
Foreign exchange rate results3 (1)3 — 
Miscellaneous financing costs/income and other, net(13)(10)(16)(12)
Total other financial income/ (expense)(28)(11)(31)(12)
Total - Financial income and expenses(128)(100)(233)(187)

Earnings per share

The computation of earnings per share (EPS) is presented in the following table:
For the three months endedFor the six months ended
July 3, 2022July 4, 2021July 3, 2022July 4, 2021
Net income (loss)683 406 1,349 770 
Less: net income (loss) attributable to non-controlling interests13 9 22 20 
Net income (loss) attributable to stockholders670 397 1,327 750 
Weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands)262,579 272,686 262,837 275,145 
Plus incremental shares from assumed conversion of:
Options 1)
295 394 309 406 
Restricted Share Units, Performance Share Units and Equity Rights 2)
1,818 5,655 1,763 5,512 
Dilutive potential common shares2,113 6,049 2,072 5,918 
Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands)264,692 278,735 264,909 281,063 
EPS attributable to stockholders in $:
Basic net income (loss)2.55 1.46 5.05 2.73 
Diluted net income (loss)2.53 1.42 5.01 2.67 
1)    There were no stock options to purchase shares of NXP’s common stock that were outstanding in Q2 2022 and YTD 2022 (Q2 2021 and YTD 2021: no shares) that were anti-dilutive and were not included in the computation of diluted EPS because the exercise price was greater than the average fair market value of the common stock or the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense and exercise prices were greater than the weighted average number of shares underlying outstanding stock options.
2)    There were 0.3 million unvested RSUs, PSUs and equity rights that were outstanding in Q2 2022 and 0.3 million outstanding YTD 2022 (Q2 2021 and YTD 2021: no shares) that were anti-dilutive and were not included in the computation of diluted EPS because the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense were greater than the weighted average number of outstanding unvested RSUs, PSUs and equity rights or the performance goal has not been met yet.

Balance Sheet Information

Cash and cash equivalents

At July 3, 2022 and December 31, 2021, our cash balance was $3,545 million and $2,830 million, respectively, of which $193 million and $208 million was held by SSMC, our consolidated joint venture company with TSMC. Under the terms of our joint venture agreement with TSMC, a portion of this cash can be distributed by way of a dividend to us, but 38.8% of the dividend will be paid to our joint venture partner. During both first six months of 2022 and 2021, no dividends were declared by SSMC.

Inventories

The portion of finished goods stored at customer locations under consignment amounted to $8 million as of July 3, 2022 (December 31, 2021: $12 million).

Inventories are summarized as follows:
July 3, 2022December 31, 2021
Raw materials129 107 
Work in process1,083 846 
Finished goods250 236 
1,462 1,189 
The amounts recorded above are net of allowance for obsolescence of $136 million as of July 3, 2022 (December 31, 2021: $120 million).

Equity Investments

At July 3, 2022 and December 31, 2021, the total carrying value of investments in equity securities is summarized as follows:
July 3, 2022December 31, 2021
Marketable equity securities10 18 
Non-marketable equity securities10 19 
Equity-accounted investments88 75 
108 112 

The total carrying value of investments in equity-accounted investees is summarized as follows:
July 3, 2022December 31, 2021
Shareholding %AmountShareholding %Amount
SMART Growth Fund, L.P.1)
8.41 %44 8.41 %31 
Others— 44 — 44 
88 75 
1) Previously named “Wise Road Industry Investment Fund I, L.P.”

Results related to equity-accounted investees at the end of each period were as follows:
For the three months endedFor the six months ended
July 3, 2022July 4, 2021July 3, 2022July 4, 2021
Company's share in income (loss)(3)(2)8 (3)
Other results— — 1 — 
(3)(2)9 (3)
Other current liabilities

Other current liabilities at July 3, 2022 and December 31, 2021 consisted of the following:
July 3, 2022December 31, 2021
Accrued compensation and benefits463 476 
Income taxes payable134 82 
Dividend payable222 149 
Other648 468 
1,467 1,175 

Accumulated other comprehensive income (loss)

Total comprehensive income (loss) represents net income (loss) plus the results of certain equity changes not reflected in the condensed consolidated statements of operations. The after-tax components of accumulated other comprehensive income (loss) and their corresponding changes are shown below:
Currency 
translation
differences		Change in fair 
value
cash flow hedges		Net actuarial
gain/(losses)		Accumulated 
Other
Comprehensive
Income (loss)
As of December 31, 2021207 — (159)48 
Other comprehensive income (loss) before
   reclassifications		(87)(24)(1)(112)
Amounts reclassified out of accumulated other
   comprehensive income (loss)		— 8 — 8 
Tax effects— 4 — 4 
Other comprehensive income (loss)(87)(12)(1)(100)
As of July 3, 2022120 (12)(160)(52)

Cash dividends

The following dividends were declared during the first two quarters of 2022 and 2021 under NXP’s quarterly dividend program:

Fiscal year 2022Fiscal year 2021
Dividend per shareAmountDividend per shareAmount
First quarter0.845 222 0.5625 155 
Second quarter0.845 222 0.5625 152 
The dividend declared in the second quarter (not yet paid) is classified in the condensed consolidated balance sheet in other current liabilities as of July 3, 2022 and was subsequently paid on July 6, 2022.